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Euro Range-Bound Despite the Release of Upbeat Eurozone Data

May 6, 2019 at 17:00 by Simon Mugo

Stacks of shiney euro coins plus some notesThe euro today traded in a tight range against the US dollar despite the release of upbeat services PMI data from across the euro area by IHS Markit. The EUR/USD currency pair was weighed down by the risk-off market sentiment triggered by President Donald Trump‘s threat of additional tariffs on Chinese imports over the weekend.

The EUR/USD currency pair today traded in a tight range marked by a low of 1.1178 and a high of 1.1203 and was within this range at the time of writing.

The currency pair opened today’s session trading sideways as markets reeled from President Trump’s Sunday tweet, which dampened investor risk sentiment as Asian markets opened overnight. The release of the upbeat Markit Eurozone services PMI, which came in at 52.8 beating expectations set at 52.5 had minimal impact on the pair. The positive Markit German and French services PMIs also had a muted impact on the pair. The positive Eurozone retail sales data for March released by Eurostat triggered a brief rally by the pair. The eurozone Sentix investor confidence index also beat expectations by coming in at 5.3 versus the expected 1.4.

The pair rallied slightly in the American session as U.S equity markets recovered and the markets’ risk sentiment improved. However, the rally was weighed down by the greenback’s recovery as witnessed by the US Dollar Index rallying to a high of 97.71.

The pair’s future performance is likely to be influenced by trade war headlines and tomorrow’s German construction PMI.

The EUR/USD currency pair was trading at 1.1202 as at 16:56 GMT having risen from a low of 1.1178. The EUR/JPY currency pair was trading at 124.14 having recovered from a low of 123.35.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

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